New Consumer Marketing

(a) compact text (International Journal of Market Research, Vol.47, No.2, 2005)

Following ten years as a marketing practitioner, Susan Baker earned her PhD in management sciences from Cranfield School of Management where she now specialises in consumer marketing. She founded and directs the New Marketing Research Group, which works together with a consortium of client organizations to understand the impact on marketing of the New Consumer (www.new-marketing.org). She is a frequent keynote speaker at marketing and management conferences and can be contacted at s.l.baker@cranfield.ac.uk.

Foreword ix Acknowledgements xi About the Author xiii Introduction 1 Meeting the Challenges 3 Overview of the Book 6 1 Earthquake! 9 Marketing in Crisis 10 The Evolution of Marketing 12 The Rise of Relationship Marketing 14 The Test of CRM 15 Changes in the Macro-Marketing Environment 18 Implications for Consumer Marketing 21 Summary Points 22 2 The New Consumer 23 Consumption in Transformation 23 Expansion of the Consumer Concept 24 Defence of Consumer Rights 25 Consumption Management in Question 27 A New Kind of Consumer 27 New Consumers Are Exercised By Time 28 New Consumers Lead Complex Lives 30 New Consumers Seek Experiences 31 New Consumers Are Marketing Literate and Highly Demanding 31 New Consumers Are IT Enabled 32 Implications for Consumer Marketing 33 Summary Points 34 3 Concerns of Brand Owners and Retailers 37 Key Issues for Brand Owners 37 The Force of Globalization 38 The Debate about the Future of Manufacturing 39 The Growth in Retailer Power 40 The Need to Balance Cost Reduction and Sales Growth 41 The Search for Innovation 42 The Retailers Response 42 Trading across Multiple Locations 43 Trading across Multiple Formats 44 Use of Multiple Channels 44 Editing Choice in Store 44 Enhancing Retail Branding 45 Developing Multinational Operations 45 Pursuing Customer Loyalty 45 Implications for Consumer Marketing 48 Summary Points 48 4 New Consumer Marketing 51 New Consumer Marketing What Is it? 51 A Response to the New Consumer 52 A Response to the Interactive Marketplace 53 A Response to Ineffective Consumption Management 54 New Consumer Marketing What Does it Mean? 55 Adopting Value-Centricity 55 Applying Science 57 Breaking out of Binary Thinking 58 New Consumer Marketing Who Is Involved? 60 Implications for Consumer Marketing 61 Summary Points 61 5 A Model of New Consumer Marketing 63 To Recap 63 Key Challenges Facing New Consumer Marketing 65 Addressing the Concerns of Brand Owners and Retailers 65 Embracing the New Consumer 66 Developing Real Consumer Responsiveness 66 Lifting Marketing Out of its Crisis 67 The New Consumer Marketing Model 67 6 Value Definition 73 The Role of Insight in Value Definition 74 Identifying the Factors that Enhance, Maintain and Destroy Value 74 Understanding the Meaning of the Value Factors 78 The Role of Traditional Market Research in Value Definition 79 Using Quantitative Research 80 Using Qualitative Research 82 Need-States Analysis 86 The Role of Non-Traditional Market Sensing in Value Definition 88 Using Database Systems 88 Using CRM Systems 89 Using Front-line Staff 91 The Role of Segmentation in Value Definition 91 Creating a Segmentation Analysis 93 The Role of Insight Generators in Value Definition 97 Summary Points 99 7 Value Creation 101 The Role of Innovation in Value Creation 102 Consumers as Innovators 104 Innovation through Process or People? 106 Innovation as a Dynamic Capability 107 A Radical Approach to Innovation 109 The Role of New Product Development in Value Creation 111 The Role of Branding in Value Creation 113 Building Successful Brands 116 Emerging Brand Issues 119 The Role of Positioning in Value Creation 120 Drawing out the Emotional Message 121 The Positioning Process 123 The Role of Price in Value Creation 125 The Evaluation of Value 127 Summary Points 129 8 Value Delivery 131 The Role of Agility in Value Delivery 131 The Role of Media and Channels in Value Delivery 133 Making the Most of Media Choices 136 Making the Most of Channel Choices 139 The Role of Service in Value Delivery 141 Creating a Service Strategy 142 Recruiting and Motivating Staff 143 Empowering Employees to Live the Brand 146 The Role of Technology Integration in Value Delivery 148 The Role of the Supply Chain in Value Delivery 152 Competing through the Supp